The agreement reached yesterday between Greece and the eurozone leaders “might in other days have provoked a military coup,” according to MEP Alfred Sant.
“I have huge doubts as to whether the agreement makes technical sense for all concerned, and whether it will make economic and social sense for Greece. It will certainly cause political turmoil there,” Dr Sant told the Times of Malta following the agreement.
“If it is rolled on, eurozone states will have carried forward a huge non-performing loan on their balance sheet with no need at present to write it down. However, the likelihood is that the problem will recur not too far into the future.”
While Dr Sant said the agreement would increase social strains and do long-term damage to the euro ‘brand’, other observers offered more mixed views. “In the circumstances, it’s the best of bad alternatives,” said sociologist and political commentator Michael Briguglio.
“The agreement is very harsh but the alternative would have been even worse for Greek citizens and the EU as a whole. Greece would still have had to pay its debts, the banking system would have collapsed, and it would have created even more instability.”
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